AI Generated Summary
Senate File No. 1195 is a legislative bill that aims to modify individual income tax rates in Minnesota. Here’s a simple breakdown of the bill:
Tax Brackets Altered: The bill outlines new income tax rates for different income brackets for married couples filing jointly, unmarried individuals, and heads of household. These rates include:
- A tax rate of 5.35% on the first segment of income for all groups.
- Higher income brackets face progressively higher rates, topping out at 9.85%.
Tax Bracket Amounts Adjusted: The specific amounts of income that fall into each tax bracket are adjusted, presumably to reflect current economic conditions or fiscal policy goals.
Resident and Non-resident Tax Calculations: For individuals who are not Minnesota residents for the entire tax year, their Minnesota income tax is calculated based on their Minnesota-source income relative to their total income.
Special Rules for Part-Year Residents and Non-residents: This includes adjustments and subtractions specific to Minnesota taxation, ensuring that part-year residents and non-residents are taxed appropriately based on their Minnesota-sourced income.
Additional Provisions for Qualifying Business Owners: For those who own a qualifying entity (likely a business) and choose a specific tax election (as mentioned under section 289A.08), there are specific instructions on how they should calculate their Minnesota income tax considering their business income.
In essence, this bill is designed to update and specify income tax rates and rules for different groups of taxpayers in Minnesota to align with updated fiscal strategies and economic circumstances. The adjustments provide clarity on how much tax individuals are expected to pay based on their income level and residency status.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 09, 2025 | Senate | Floor | Action | Introduction and first reading | |
| February 09, 2025 | Senate | Floor | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Amending income tax brackets and rates for different categories of filers."
],
"removed": [],
"summary": "The bill amends section 290.06 of the Minnesota Statutes, which pertains to individual income tax rates.",
"modified": [
"Adjusts tax rates and income brackets for individuals, estates, trusts, and married couples filing jointly or separately."
]
},
"citation": "290.06"
},
{
"analysis": {
"added": [
"Inclusion of specific income additions for non-residents calculating Minnesota income tax."
],
"removed": [],
"summary": "Amendments refer to the inclusion of certain income additions under section 290.0131.",
"modified": [
"Updates the list of additions required for Minnesota income tax calculations."
]
},
"citation": "290.0131"
},
{
"analysis": {
"added": [
"Inclusion of specific income subtractions for non-residents calculating Minnesota income tax."
],
"removed": [],
"summary": "Amendments refer to the subtraction of certain incomes under section 290.0132.",
"modified": [
"Updates the list of subtractions allowed for Minnesota income tax calculations."
]
},
"citation": "290.0132"
},
{
"analysis": {
"added": [
"Allows computation of tax for non-residents who are owners of qualifying entities electing tax payment option."
],
"removed": [],
"summary": "Reference to section 289A.08 regarding tax payment election by qualifying entities.",
"modified": [
"Incorporates specific computation methods for qualifying entity owners in tax calculations."
]
},
"citation": "289A.08"
}
]